Understanding China?s historical development: The profit and the risk that China?s stock market provides investors
AbstractThe purpose of this paper is to describe China?s unique historical development that transformed the Celestial Empire into the largest economy in the world in the beginning of the nineteenth century, with a GDP that exceeded that of Western Europe, Japan, the US and Russia combined, and the decline during the ?Century of Humiliation?, and Mao Zedong?s communism that culminated in the ?Three Bitter Years? from 1958 to 1961 that produced the large famine with an estimated death of 20 to 30 million people. After this disaster, aggravated by the ?Cultural Revolution? that followed, came the amazing growth started by Deng Xiaoping?s economic reforms in 1978, that is only comparable to the United States emergence as an economic giant during the nineteenth century. China?s sustained growth, at an astounding 10 percent per year over the last 30 years, is without precedent. Many economists predict this growth rate will continue at 7 to 8 percent per year for several decades. This extraordinary sustained growth was partially fueled by the formation of its rapidly expanding financial market, and the profit and risks that its stock marked provides investors.
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Bibliographic InfoPaper provided by globADVANTAGE, Polytechnic Institute of Leiria in its series Working Papers with number 35.
Date of creation: 05 Jul 2009
Date of revision:
China?s historical development; China?s social-capitalism; China?s economic growth; Risks to China?s growth; China?s remaining poverty; China?s bureaucracy and corruption; China?s stock market; China?s mutual funds China?s unsustainable growth;
Find related papers by JEL classification:
- M0 - Business Administration and Business Economics; Marketing; Accounting - - General
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-DEV-2009-07-11 (Development)
- NEP-HIS-2009-07-11 (Business, Economic & Financial History)
- NEP-TRA-2009-07-11 (Transition Economics)
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